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Credit companies and charities in Scotland say that Scots might be needing a better level of debt education to help prevent their personal financial issues escalating.

The news follows a revelation from one debt charity that the number of young clients who are seeking their advice has rocketed by 50% over the last five years.

The government also highlights that the biggest driver for homelessness is the loss of a private tenancy due to rental arrears.

However, financial education is on the school curriculum for youngsters in England and Wale so, in theory, they should be better prepared for the wider world.

This means that primary school children get to understand personal finance, credit and taxes in their citizenship classes.

Curriculum for excellence has delivered a financial competence

Since 2010, for schools in Scotland, the curriculum for excellence has delivered a financial competence and understanding across learning subjects.

Now one financial education charity says it might not be enough.

Young Enterprise’s Russell Winnard says that putting financial education on the curriculum has not really made much of a difference.

Also, with the growing take-up of academies, around one in three state schools are currently academies, they don’t have to follow the national curriculum.

The other issue is that when it comes to exams, financial education is not a subject that will result in a qualification.

While citizenship is tested, financial questions are few and it’s not a popular subject for pupils to study for at GCSE level.

Many people are struggling financially

There’s no doubt that many people are struggling financially and the numbers are increasing but the growing numbers of young people not understanding the trouble they can get into with a credit card debt is of concern to many debt charities and agencies.

It doesn’t have to be this way and for those who do find themselves struggling to repay debts, then there is help at hand.

It’s important to act quickly and not ignore problems with repaying debt and you should seek independent advice for the potential solutions available.

For people living in Scotland, then it is possible to access debt solutions that are not available elsewhere in the UK.

The friendly team of debt advisers at Scotland’s Trust Deed will help explain more about the benefits of a Scottish trust deed, the debt arrangement scheme and also sequestration, which some may know as bankruptcy.

Solution for debt

This last solution for debt is a serious one and careful thought needs to be given before it’s undertaken. While your debts will be resolved, it’s not quite that straightforward.

There are benefits for the debt arrangement scheme and a trust deed in Scotland and while both are similar, they are also very different.

The Scottish trust deed is aimed at people with debts of more than £5,000 and a repayment plan will be agreed and maintained for up to four years. The attraction for maintaining repayments is that the amount that remains at the end will be written off as unaffordable.

That will be a big help to many Scots struggling financially but the debt arrangement scheme is also worth closer consideration too.

Debt advisers will be able to explain that the debt arrangement scheme will see a repayment plan being put in place, but there is no amount remaining to be written off as unaffordable because the entire debt will be repaid in full, but at an affordable rate.

The scheme is run by the Scottish government and has helped many Scots who have struggled financially in recent years get back into better financial health.

Advice about the Scottish trust deed

If you need more help and advice about the Scottish trust deed, the debt arrangement scheme or sequestration, then it’s time to speak with the Scotland’s Trust Deed team.